Which One of the Following Statements Is True

question 45

Multiple Choice

Which one of the following statements is true?

• A) The audit committee provides contact between the board of directors and the key officers of the company.
• B) The audit committee has become less involved in the financial accounting system as a result of the Foreign Corrupt Practices Act.
• C) The audit committee is a board of directors subset that acts as a direct contact between the stockholders and the independent accounting firm.
• D) The board of directors consists of the company's external auditors.

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Definitions:

Laissez Faire

An economic philosophy advocating for minimal government intervention in the market and the economy, emphasizing free-market competition.

Workplace Rules

Regulations and guidelines established by employers that outline expected behaviors, responsibilities, and procedures for employees.

Employee Stock Ownership Plans

Programs that allow employees to become partial owners of the company they work for through the acquisition of its stock.

U.S. Labor Laws

Laws regulating labor in the United States, which set standards for working conditions, wages, hours, child labor, and the right to collective bargaining.